How accessible luxury brands can leverage new loyalty strategies without eroding brand equity

January 8, 2026

Gaining or regaining customer loyalty will be a key imperative for luxury brands and retailers amidst rapidly evolving shopping behavior across generations. Image credit: Tina Ji, Shutterstock

By Michelle Wood

In 2026, accessible luxury brands will face a very different reality than high-end “heritage”” retailers.

Ultra-luxury shoppers remain largely insulated from economic volatility. Not so for the “premium but not top-tier-luxury” segment. Brands such as Marc Jacobs serve a customer demographic that is far more deliberate, price-sensitive and, ultimately, willing to shift brand loyalty for more value.

This emerging dynamic is leading many mid-market luxury brands to cautiously enter loyalty and cashback ecosystems once considered off-limits for fear these programs might be detrimental to the brand’s identity.

Instead, what they are finding is that modern rewards offerings can help attract new shoppers and retain existing ones, without diluting the brand.

Why accessible luxury is rethinking loyalty

Recent economic signals show softening in the mid-market luxury segment.

McKinsey noted that “macroeconomic conditions are weighing heavily on the sector,” and in its State of Fashion 2025 report, signaled value-conscious behavior in the mid-market luxury/premium segments.

Similarly, Deloitte’s 2024 Consumer Loyalty Survey noted a rise in brand-fluidity as shoppers prioritize value and flexibility over long-standing brand loyalty.

Shoppers who once viewed a $350 handbag or $300 pair of shoes as a treat now pause to ask whether the purchase feels justified. Mid-market luxury consumers seem to be asking, “Do I really need to buy that bag right now?”

This is the context in which accessible luxury brands are re-evaluating rewards programs.

The goal is not to discount the brand but rather to create incentives that reassure customers that they are making a wise purchase, without slipping into blatantly promotional territory.

Michelle Wood

The Amazon Effect: Luxury is already going mass-market

One of the strongest signals that perceptions of luxury are changing came from Amazon’s recent move into high-ticket product categories, including vehicles.

When consumers see premium goods such as cars, Rolex watches and Hermés handbags sold alongside everyday essentials, it normalizes luxury within mass-market environments.

If Amazon can introduce aspirational and luxury-caliber items without undermining brand value, then rewards program participation isn’t inherently brand-eroding either.

Instead, it becomes part of a broader evolution in how and where consumers expect to find value for premium brands, not whether they think less of a brand for offering shopping rewards.

AI shopping is reshaping how consumers compare and choose

Another accelerant is the rise of AI-assisted shopping.

PYMNTS found that 50.3 percent of consumers used generative AI at least once for shopping on Black Friday last year.

AI tools now deliver product comparisons, alternatives and similar items, all of which make price and value transparency the default.

For accessible luxury labels, whose shoppers are more sensitive to relative value, AI introduces a new challenge: the brand must remain favorable not only in the eyes of the consumer but also in the eyes of the algorithm.

Loyalty and rewards programs become a strategic lever here, because they create a built-in reason for AI-driven comparison tools to surface the brand as a strong value choice.

The task for brands today is to meet customers where their digital decision-making now occurs.

Why modern loyalty doesn’t necessarily cheapen the brand

Many accessible luxury brands avoided loyalty ecosystems out of fear that offering cashback rewards would tarnish their brand. But modern loyalty is no longer synonymous with just price promotions.

For example, a study from PayPal and Reach3 Insights found that 68 percent of participants said they prefer cash back versus points.

In this context, rewards framed as smart financial benefits such as cashback do not carry the same stigma as markdowns or coupons.

Many accessible luxury brands prefer platform partners aligned with higher-income households and a premium feel rather than those associated with bargain-hunting or couponing communities.

The preference is for environments that match the brand’s identity and ensure the incentive feels like a member benefit rather than a coupon.

Bottom line: the right channels can create customer value without sacrificing brand equity.

2026 loyalty blueprint for accessible luxury

To successfully navigate loyalty without diluting their premium positioning, mid-market luxury brands could consider the following framework:

Reward the relationship, not just the purchase: Besides shopping rewards, the most “brand-safe” loyalty structures emphasize exclusive access, early product drops, member-only products and experiential rewards.
2. Choose partners that reflect the brand: Loyalty works best when it aligns with environments where premium consumers already shop and trust. Banks, curated shopping platforms or AI-driven commerce interfaces that lean upscale can preserve brand perception.

Ensure that the brand is discoverable in AI commerce: As AI takes a more active role in the shopping journey, brands must ensure their product data, catalog information and promotional structures are easily interpretable by shopping agents. Visibility is now as much technical as it is creative.

Use loyalty as a value-justification tool: In moments of economic uncertainty, shopping rewards help consumers feel confident that a discretionary purchase is still a smart one, without eroding the underlying premium price point.

Recipe for success in 2026: balancing aspiration with affordability

The question is no longer “Will shopping rewards cheapen the brand?”

In 2026, the better question is: “How can rewards elevate the brand for a consumer who expects both value and aspiration?”

As economic pressure reshapes purchasing behavior and AI-driven comparison tools make it effortless for shoppers to evaluate alternatives, loyalty now hinges on programs that feel premium, personal and emotionally resonant.

In 2026, the brands that thrive will be those that balance aspiration with affordability, turning rewards into a core part of their differentiation strategy rather than a transactional afterthought.

Michelle Wood is senior vice president of merchant development at Wildfire Systems.

These issues will be discussed at Luxury Roundtable's Luxury Outlook Summit Jan. 14-15 in New York. Please tap or click here to view the agenda. Join us – time is running out!

Share your thoughts. Click here

How accessible luxury brands can leverage new loyalty strategies without eroding brand equity

6 days left! Register now for Luxury Outlook Summit New York

How accessible luxury brands can leverage new loyalty strategies without eroding brand equity

Why AI will be key for growing a luxury business in 2026

5 trends that will define small-business marketing for luxury in 2026

From ownership to proven worth: Why luxury is entering its most honest era yet

Why this Luxury Outlook Summit Jan. 14-15 is different from years past

Saks Global’s woes signal waning enthusiasm for luxury department store chains

Invitation to take State of Luxury 2026 survey – respondents receive full report

How positioning and pricing are rapidly changing the definition of luxury

Why Jan. 14-15 are key days for luxury professionals